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22%. One of the issues potatoes continue to ght is placement within the produce category. “Potatoes are the most popular item in the produce (vegetable) category with 87% of households purchasing them each year. However, the potato category is usually in the back of the store and not visible from the
store entrance,” he says.
Potatoes USA also commissioned a study
showing not only that secondary displays increase sales but also that the bump is even greater if you strut your spuds in the right place.
“ is past year, we worked with Kantar Consulting to develop Merchandising Best Practices for the fresh potato category at retail,” says Kayla Dome, global marketing manager for retail at Potatoes USA, Denver. “We have recommendations regionally.”
While an end cap location within produce increases sales by more than two %, if that same end cap is next to the onions the sales bump is more than 4%. Put the main potato display across from the apples, and sales pick up nearly 5%.
Some retailers may be losing sales by locating secondary displays next to sweet potatoes, which reduces potato sales by 3.7%, corn, which causes a 9.6% decline, or broccoli, which Merchandising Best Practices estimates will cost you 5.5% of your potato sales.
Some shippers encourage these additional displays by o ering a variety of high-graphic bins for the potatoes.
“Secondary displays drive impulse sales and basket ring,” says John Pope, vice pres- ident for sales and marketing at Mountain King Potato Co., Houston. “ e center part of a Mountain King display starts with either Fresh Bin or a Grill Bin point of sale. ese graphic pieces of merchandise are the focus point of extensive revenue potential.
“Our retailers utilize these point-of-sale materials with their brand merchandise and tie in with the thematic-focus points to drive sales. A grilling pit, charcoal, paper plates, utensils and other brand products are part of a cross-merchandise plan to drive incremental sales,” he says.
e variety of potatoes in the displays matters more in driving sales than does size. “Assortment optimizes potato sales
across channels, not display size,” advises Rachel Leach, category manager for RPE, Inc., Bancroft, WI. “While a larger display will generate a larger return, smaller format stores are still successful with smaller sets. e optimum display features a wide range of potato types and sizes.”
2. PAY ATTENTION TO LOCATION
e location of the potato display has a profound impact on sales, according to Merchandising Best Practices.
If produce is to the front and right of the store, potatoes enjoy a nearly 9% increase in sales, and if the spud signage is visible from the store entrance, there is another 3% bonus. Raised bins improve sales on the order of 4%.
A standalone shelf for potatoes increases sales more than 5%, and location to the back
left of the produce department also increases sales.
3. KNOW YOUR DEMOGRAPHICS
is can a ect everything from the mix of varieties you would do well to carry, and even the size packs.
“At Tops Markets, we have a broad range of demographics in just about every store, so we really do not change or eliminate varieties based on that, although we may eliminate a
PRODUCE BUSINESS / SEPTEMBER 2019 / 63